DirecTV Group Inc.'s (DTV) first-quarter earnings rose 8.5% as
it continued to draw new customers in Latin America, an area of
increasing focus for the satellite television provider.
The region has become DirecTV's main source of growth as its
U.S. markets attract fewer new customers. The company this year set
a new plan that aims to double its Latin America subscribers to
more than 16 million and annual revenue to more than $10 billion
over the next five years.
In the first quarter, net subscriber additions in DirecTV's
larger U.S business totaled 81,000, easing sharply from the 184,000
subscribers added a year earlier. Total subscriber base stood at 20
million at the end of the quarter, up slightly from 19.4 million a
year ago.
In Latin America, however, the company added a net 593,000
subscribers in the first few months of the year, up from 427,000
subscribers tacked on a year earlier. The company had a total of
8.5 million subscribers in the region by the end of the quarter, a
36% jump from the year earlier.
DirecTV reported a profit of $731 million, or $1.07 a share,
compared with year-earlier profit of $674 million, or 85 cents a
share.
Revenue increased 12% to $7.05 billion. Analysts were looking
for earnings of $1.06 a share on $7.06 billion in revenue,
according to a poll conducted by Thomson Reuters.
Operating margin widened to 18.6% from 18.3%.
Shares closed Monday at $47.91 and were inactive in premarket
trade. The stock is up 12% since the start of the year.
-By Mia Lamar, Dow Jones Newswires; 212-416-3207;
mia.lamar@dowjones.com